Natural Food Corporation Proposes to Combine with Organic Produce, Inc

question 41

Essay

Natural Food Corporation proposes to combine with Organic Produce, Inc., and asks Natural Food shareholders to vote on the proposal. Phoebe, a Natural Food shareholder, votes against it, but is outvoted by the other shareholders. Is there an action that Phoebe can take to avoid being forced to go along with the transac?tion? If so, what can she do? After the combination, Organic Produce ceases to exist. Natural Food is the surviving firm. What type of combination is this?

---

Definitions:

Compounded Monthly

Refers to the process where the interest earned is added to the principal sum each month, and future interest is calculated on the new total.

Sinking Fund

A reserve fund established by setting aside revenue over a period of time to fund a future capital expense or repayment of a long-term debt.

New Roof

The process or cost associated with replacing an old roof with a new one, either for repair or upgrade purposes.

Compounded Annually

Interest calculated on the initial principal and the interest accumulated over the previous periods once every year.